Hermès // 2021 Universal Registration Document

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CORPORATE SOCIAL RESPONSIBILITY THE PLANET: RAW MATERIALS

The House collects information on how best to manage this natural resource. For the purposes of supply chain traceability, countries of origin, species used, forest type (plantation or natural forest) and supplier certificates are monitored and recorded. The risk assessment checks for corruption in the country and the species appearing on the UICN (International Union for Conservation of Nature) and CITES red lists. To demonstrate its commitment, Hermès took part in the CDP Forest disclosures in 2019, 2020 and 2021, obtaining an A- rating in 2021 . The objective is to ensure FSC certification of all timber supplies (excluding fruit and Indonesian timber, subject to other certifications) by 2025. Metals and stones The precious materials used by the Watches division, Hermès Bijouterie and the Leather Goods division are mainly gold, palladium and diamonds. Hermès has implemented very strict procurement practices that make it one of the leaders in the sector. The Hermès Group has had Responsible Jewellery Council (RJC) certification since 2013. The RJC is an international benchmark body for the profession. The audit for the renewal of this certification (Code of Practices – COP) took place in 2019 and was validated in 2020. Initially covering only gold, platinum and diamonds, the new certification rules now include silver and certain precious stones (rubies, emeralds and sapphires). Hermès has become the first luxury house to be certified across the whole of this scope and according to the strengthened criteria of the new COP standard. The management of supply chains takes OECD recommendations into account. To this end, the House promises its partners that it will promote responsibility principles. This does not mean simply taking action with first tier suppliers but also going further along the chain, as far as mining, for stones, and recycling or refining for metals. Significant transparency and audit work is already bearing fruit, especially in gold and diamonds. 79% of the workshops with which Hermès works are certified members of the RJC, while 16% have already been audited and are awaiting the formalisation of their status. 100% of diamond dealers are certified. Most of the jewellery is made from gold and silver, using pellets or primed materials such as plates or wires. This gold and silver comes from the European metal recycling sector, from the jewellery sector itself or from other industries such as electronics. Hermès does not therefore use gold from mines in its jewellery. The analysis of the origin of the metal of the components (chains, clasps) and gold salts used for the electroplating, initiated in 2020, confirmed that they came from similar recycling channels. Refiners in the gold supply chain are certified by the RJC to the “Chain of Custody” or COC standard, which ensures monitoring of the sector and distinguishes between the different categories of recycling. Industrial waste and old gold are classified in one category, with investment gold refined before 2012 in another. In efforts to extend and formalise this chain of trust, more and more manufacturing workshops are also using this certification.

The objective is ultimately also to monitor and support breeders’ agro-pastoral practices aimed at preserving the resource and the biotope. Hermès, together with the CCMI (Cashmere and Camel Hair Manufacturers Institute), supports the development and implementation of a code of practice for the accreditation of animal welfare and the environmental sustainability of cashmere production in China led by the ICCAW (International Cooperation Committee of Animal Welfare). From 2021 onwards, 25% of Holding Textile Hermès’ supplies met this new standard. This proportion will continue to increase in the coming years, until it gradually reaches 100% as breeders are trained and adhere to this new standard. Hermès uses a very small volume of cotton in its collections. As for all materials, the cotton supply policy is guided by the search for the best quality and the guarantee of traceability. The cotton supply chain, based on long-standing partnerships, favours low-risk sources: more than 60% of the cotton fibres used in Hermès products come from Europe or the United States. Hermès has implemented a control approach to ensure respect for human rights throughout the supply chain, from production to dyeing and spinning. In 2020, the commitment within the Fashion Pact resulted in work with the main suppliers in order to switch all cotton supplies to organic cotton or GOTS (Global Organic Textile Standard) for packaging. These improvements will take place gradually from 2021 to 2024 on the herringbone covers and wrapping ribbons, which will significantly reduce the corresponding water consumption. This certification also includes a mandatory criterion for the ethical treatment of workers. In 2021, the HTH Textile division also committed to a voluntary GOTS certification process for its sites. Thus, the ATBC Bussières weaving site and the HTH central entity obtained GOTS 6.0 certification for certain product lines in the second quarter of 2021. The SIEGL printing and AEI finishing sites also aim to gain this certification in early 2022. These initiatives have already led to concrete progress: in 2021, 10% of the cotton used by the HTH division was GOTS certified. Wood The woods used for Hermès objects are mostly certified (FSC certification for oak, SVLK for mahogany). Some partners, in addition to sourcing certified timber, have ensured their entire value chain is FSC-certified, guaranteeing Hermès supplies that are 100% certified. 2.4.2.3.4 Other materials Cotton

124 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL